BP has agreed to acquire a 60% operating interest in three offshore exploration blocks in Namibia from Eco Atlantic Oil & Gas, subject to government approvals. This marks BP's entry as an operator in the country, strengthening its exploration portfolio in the frontier Walvis basin.

Transaction Details and Stakeholders

Under the deal, BP will become the operator of Petroleum Exploration Licences (PELs) 97, 99, and 100. Eco Atlantic will retain a 25% stake, while state oil company Namcor holds 15%. Local entities Tangi Trading Enterprise, Lotus Exploration, and Moonshade Investments will each hold a 5% interest in PELs 97, 99, and 100, respectively. Eco Atlantic will receive $2.7 million in cash from the transaction.

Strategic Rationale and Exploration Plans

BP stated the acquisition aligns with its strategy to expand its upstream portfolio and builds on its recent exploration successes in Namibia through its Azule Energy joint venture with Eni. The proposed work program includes seismic reprocessing on PEL 97 and a 3D survey covering at least 3,000 square kilometres over PELs 99 and 100.

Significance and Next Steps

The deal is highly significant for Eco Atlantic, which has sought to farm out its Walvis basin interests for years. Completion of the transaction remains subject to customary conditions and approvals from Namibian authorities, including the Ministry of Mines and Energy and the Upstream Petroleum Unit.